2018.12.1817:45:00UTC+00New Zealand Q3 Current Account Deficit Seasonally Adjusted NS$2.6 Billion

New Zealand's seasonally adjusted current account deficit narrowed to NZ$2.6 billion in the third quarter of 2018, NZ$102 million smaller than the June 2018 quarter deficit (NZ$2.7 billion), Statistics New Zealand said on Wednesday.

The annual current account deficit widened to NZ$10.5 billion for the year ended September 2018 (3.6 percent of GDP) from the NZ$7.4 billion deficit for the September 2017 year (2.7 percent of GDP).

The seasonally adjusted goods deficit narrowed to NZ$997 million (down NZ$343 million), while the services surplus narrowed to NZ$1.1 billion (down NZ$344 million).

The primary income deficit narrowed to NZ$2.6 billion (down NZ$65 million) and the financial account recorded a net outflow of NZ$303 million.

New Zealand's net international liability position was NZ$156.2 billion (53.7 percent of GDP), up from the revised net liability position of NZ$154.5 billion (53.6 percent of GDP) at 30 June 2018.

New Zealand's net external debt position was NZ$151.5 billion (52.1 percent of GDP), up from the revised net external debt position of NZ$150.1 billion (52.0 percent of GDP) at 30 June 2018.

The seasonally adjusted goods deficit was NZ$1.0 billion in the latest quarter, NZ$343 million narrower than in the June 2018 quarter. This was due to a NZ$750 million rise in goods exports - the value of dairy, meat, and log exports rose; crude oil led the NZ$407 million increase in goods imports.

The seasonally adjusted services surplus was NZ$1.1 billion in the September 2018 quarter, down NZ$344 million from the June 2018 quarter. Service exports dropped NZ$201 million, while service imports rose NZ$142 million. The fall in the services surplus was due to a NZ$280 million fall in expenditure by visitors to New Zealand.

The primary income deficit narrowed to NZ$2.6 billion in the latest quarter, down NZ$65 million from the June 2018 quarter. This was due to a NZ$98 million rise in the investment income New Zealand investors earned from their investment abroad; income from foreign investment in New Zealand rose NZ$22 million.

New Zealand saw a net investment outflow of NZ$0.3 billion in the September 2018 quarter.